Moody’s Investors Service last week downgraded $276 million of outstanding Hampton Roads PPV LLC military housing taxable revenue bonds, Series 2007A.
The rating remain on watch for possible further downgrade.
Class I bonds in the approximate amount of $209.5 million have been cut to Ba2 from Baa2, and Class II and Class III bonds in the amounts of $37.7 million and $8.8 million, respectively, have been cut to B1 from Baa3.
The rating actions primarily reflect the project’s deteriorating performance as a result of the delay in construction and declining demand for the units due to the departure of a large number of eligible tenants due to a change in the Virginia homeport of one of the aircraft carriers as well as ship deployments.
The ratings remain on watch because of the possibility of further deterioration in the performance.
